$BTC

Why is Crypto falling sharply?

The biggest reason behind the market crash is Trump’s new tariff policy, which includes:

25% tariffs on imports from Canada and Mexico

10% tariffs on goods from China

Bitcoin’s dip below $97,000 is significant, as it had been trading steadily above this level in recent weeks. Other major cryptocurrencies also tumbled:

Ethereum (ETH) dropped 3.2% to $4,800

Solana (SOL) fell 5.1% to $95

Dogecoin (DOGE) lost 4.5%

XRP plummeted 9.7%, hitting $2.35

Federal Reserve’s role in crypto’s fall

The Federal Reserve recently confirmed that it will maintain current interest rates, citing inflation concerns. High interest rates generally weaken Bitcoin and other digital assets, as they reduce overall market liquidity.

Many crypto investors had expected Trump’s policies to be crypto-friendly, but the immediate impact of his trade decisions has been negative